The board was informed of the remarkable turnaround of approximately 112 lots that had been tax-forfeited since the post-recession period around 2008. The HRA partnered with Level Contracting to initiate a redevelopment agreement, leading to the construction of single-family homes. The success of these projects is evident, with only three lots remaining unsold, and the completion of the remaining homes is anticipated by year-end. The financial implications are notable: the estimated market value of these lots has soared from approximately $1.065 million to over $30.5 million, contributing an estimated $270,000 in taxes to local government entities.

Despite the increased market value, the board discussed a curious decrease in individual tax revenue from these newly constructed homes. This was explained through an analogy of a pie, where as the tax base expands with more homes, each share of the tax pie diminishes, aligning with the county’s efforts to maintain relatively stable tax rates.

Further expansion is planned with the addition of parcels for new development, including the construction of nine duplexes on two parcels of land owned by the HRA. These developments are aimed at increasing housing density while maintaining design consistency with existing homes. The HRA representative confirmed the ongoing efforts to secure approximately $170,000 in grant funding to cover infrastructure improvements, which are estimated to cost $450,000. Collaboration with the city of Brainerd is crucial in this process, underlining the importance of securing this highly competitive funding.

The board also delved into the implications of the HRA’s Housing Trust Fund, which has financed nearly $1.7 million in loans to date. This includes various forms of assistance such as owner-occupied rehab loans, down payment support, and new construction financing. Rehabilitation loans are particularly critical in maintaining the housing stock, offering homeowners a 20-year repayment term with no monthly payment requirement, thus reducing immediate financial pressure.

The discussion also highlighted the rehabilitation efforts at the Lofts on Noatne, where loans with a balloon payment structure after 20 years are in place to stabilize rents and facilitate refinancing. The board’s model accommodates qualifications for individuals earning up to 115% of the area median income, contrasting with state models targeting lower income levels.

In addition to housing developments, the board addressed other county matters, including the issue of tax-forfeit properties not included in the timber management program. Specific concerns were raised about properties in Brainerd with high assessments that hinder their sale and return to the tax base. The board discussed potential reassessment strategies and collaborations with developers, including Habitat for Humanity, to overcome these barriers.

The meeting also covered updates from the Administrative Services department. The department is currently in the budget planning phase, with a focus on the 2025 Capital Improvement Plan. This plan has already seen improvements, with audit findings reduced from 13 to four, and the expansion of capital improvement planning from a five-year to a seven-year framework.

The Information Technology (IT) department provided insights into the county’s data management strategies. The IT team is working on policies regarding artificial intelligence and social media use. The department also reported on cybersecurity measures, notably a decrease in phishing click rates, and shared statistics on data usage and protection efforts.

Finally, the board discussed ongoing Capital Improvement Projects, including the installation of a roof over a dumpster area to address safety concerns, and security enhancements across the campus.